What Are the Steps to Get a VA Home Loan?

Since 1944, as part of the GI Bill of Rights, the VA home loan program has provided millions of active and retired military persons low-cost financing. While the VA program formerly developed a reputation for mountains of red tape with long approval and closing time frames, the process has been greatly streamlined. In most cases, borrowers need to complete only five steps to get financing and close the loan. The VA makes no direct loans, but guarantees the balances of loans made by approved lenders. Ad VA Military Mortgage 2017 Qualify for Your 2017 VA Mortgage. VA Loan Verification - Takes 1 Min! www.militaryvaloan.com​/​VA-Home-Loan Eligibility Certificate Complete VA Form 26-1880, Request for a Certificate of Eligibility for VA Home Loan Benefits. Submit this form with your most up-to-date discharge or separation papers to a VA Eligibility Center. This paperwork requests an Eligibility Certificate and shows your dates of active duty and your separation/discharge date. This is evidence for the mortgage lender that you qualify for VA financing. You can also download this form from the Internet. Purchase Agreement Make an acceptable offer on the home you want. Sign a valid purchase agreement specifying the agreed-upon price, the mortgage approval deadline and the desired closing date. Often overlooked, the mortgage approval deadline is important to both buyer and seller. A buyer must notify the seller of his mortgage application status by the deadline. If the buyer is not approved and neglects to notify the seller by this date, the buyer risks losing his deposit. A borrower must submit the purchase agreement as part of his mortgage application. VA Appraisal Since the real estate "crash" of 2007 to 2009, the mortgage appraisal has become a source of concern for homeowners wishing to refinance and for home sellers. Fair market values of many homes have declined as much as 25 to 35 percent. VA appraisals are a bit more extensive than standard conforming mortgage appraisals and typically are more conservative. The appraisal usually occurs within seven or eight days of submitting a loan application. Complete Application Package Submit all documents that the lender requests as quickly as possible. Before making an application, prepare all the "usual" documents--pay stubs, two years of W-2 forms, bank statements, 1099 forms--to speed the process. If you currently rent a residence, submit contact information about your landlord so that the lender can verify your account. Gather all additional documents your lender requests to complete your file quickly. Approval and Closing If you submit all documents on time, your credit is acceptable and there are no appraisal issues, you should have an approval in three to four weeks after application. Closing requirements--title search, title insurance, document preparation--should be completed in 10 to 14 days. Then you can close your loan and move into your new home.